Tech testing firm Calnex plots £42m London listing as it cashes in on 5G
Telecoms testing firm Calnex today said it is aiming to raise £22.5m through a London initial public offering (IPO) as it looks to capitalise on the rollout of 5G.
The Scottish tech firm said the Aim listing, planned for early October, will value the company at £42m.
Calnex specialises in test equipment for telecoms networks, allowing customers to check the performance of critical infrastructure.
Since its inception in 2006 the firm has secured over 600 customer sites in 68 sites, with customers including BT, Ericsson, Nokia and Facebook.
The company is now looking to cash in on the rollout of 5G across the UK and worldwide.
Calnex founder and chief executive Tommy Cook said the telecoms industry was experiencing “unprecedented levels of change” that provided the opportunity for “substantial revenue growth”.
The IPO, which Calnex said was significantly oversubscribed, will raise £6m for the company and £16.5m for existing shareholders.
“Having demonstrated sustained growth since inception, the move onto the public markets will provide us with new capital, a raised profile and enhanced ability to execute on acquisitions, as we seek to capture an increased share of the growing market for telecoms test solutions,” boss Cook said.
Calnex said it will place 46.9m new and existing shares at a price of 48p per share. On admission, the company will have 87.5m ordinary shares and a free float of roughly 43 per cent.